An appraiser performing a 'drive-by appraisal' (exterior-only) for a Colorado property is providing:
Why B. A limited appraisal based on exterior observation and public records data, which may not fully reflect interior condition Is Correct
Answer B: B. A limited appraisal based on exterior observation and public records data, which may not fully reflect interior condition
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
People Also Study
Related Colorado Questions
- A Colorado appraiser is asked to do a 'drive-by' (limited scope) appraisal rather than a full interior appraisal. This is an example of:Property Valuation
- Under Colorado appraisal standards, USPAP requires that an appraiser's report include:Property Valuation
- In Colorado, an appraiser performing a 'desk appraisal' (or desktop appraisal) relies primarily on:Property Valuation
- An appraiser performing an appraisal for a divorce proceeding in Colorado must:Property Valuation
- Colorado uses which public records system to establish priority of claims against a property?Escrow & Title
- Under the Colorado Contract to Buy and Sell, the 'inspection objection' provision allows the buyer to object to conditions discovered during inspection. The seller's response options include all of the following EXCEPT:Contracts
- Under CCIOA, a Colorado HOA must make its financial records available to unit owners within:Property Management
- A Colorado buyer is purchasing a rural property with a USDA Rural Development loan. USDA loans are available in areas with a population of no more than:Finance
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →